News Flash: When you apply at a conventional lender they want to review EVERYTHING. Anyone else begin sweating at the thought of that?!
Lenders look at your business P&L statement, balance sheet, tax returns, business and personal financials, business and personal credit, revenue, collateral, and so on. It’s hard to believe anyone gets approved considering how much information is under scrutiny.
What most business owners don’t know is you can get money for your business based on company strengths... AND you can do this without all of the other items coming under review.
Every business has its strengths and weaknesses. And of course, when a lender requires such extensive documentation, they often find the company’s weakness. Once they find the weakness... well I think we all know how this story ends.
They deny the business owner the much-needed funding. What if I told you there's a solution?
Hear me out...
When a lender only looks at a company’s strengths, you increase your company's chance of getting approval for the most amount of money.
Some businesses have collateral as their strengths. These include purchase orders, account receivables, and credit card sales. They also include equipment, inventory, and commercial real estate. And they include cash flow, or other business assets. Some business owners have 401(k)s, IRAs, or other securities they can use as their strength to secure funding.
Be creative when it comes to thinking about collateral and your funding options. Find lenders that are willing to lend you the money you need based on what your strengths are rather than your weaknesses.
One way you can analyze your financial strengths and weaknesses is by using our Business Finance Suite. But if you are not in a position to purchase our suite today, another way you can analyze your strengths is to use a guided business journal. We found this one on Amazon that does a great job of this!! https://amzn.to/3rfsmsq
Be open to the idea that your business may have more strengths than you think and there may be more than one way to secure funding!!
I like to call this the art of finance, my friends!! You can do this!
Find the journal mentioned in the article here.